'A rule was broken' - Alan Pace speaks out after Clarets are awarded £40m in compensation

Chairman Alan Pace said ‘a rule was broken and a competitive advantage was improperly gained’ after the Clarets were awarded £40m compensation from Everton.

The Clarets have won a legal dispute after the club sued the Toffees for breaching Premier League rules.

They sued the Toffees for being in breach of profitability and sustainability rules during the 2021-22 season when the Clarets were relegated from the top flight.

Everton were deducted 10 points in late 2023 for financial misdemeanours, a punishment reduced to six points on appeal a few months later.

The Clarets argued that had the six-point penalty for PSR breaches been applied during the 2021-22 season then they would have survived at the Toffees’ expense.

The statement from Pace said: “When we were relegated in 2022, we disappointingly accepted the outcome on the pitch. What we could not accept and what no club should be asked to accept was competing in a competition later shown to have been compromised.

"We did not come to this lightly. When resolution through every available channel was declined, formal action was imposed as the only path left to us.

"The Independent Commission has now confirmed, in clear terms, that a rule was broken and a competitive advantage was improperly gained.

"Our action has always been about making football fair. Clubs that comply with the rules deserve to compete on a level playing field. Fans deserve it. The sport demands it.

"The Commission’s decision affirms the existing framework to protect the game.”

Everton issued their own statement and revealed that they have already appealed the ruling.